As he battles the economic downturn, President Barack Obama is bracing Americans for a recovery different than any in recent memory – not a go-go return to prosperity like the 1990s but a slow, steady climb to stability.
“We know that an economy built on reckless speculation, inflated home prices and maxed-out credit cards does not create lasting wealth. It creates the illusion of prosperity, and it’s endangered us all,” Obama said recently.
But what Obama rarely says about ending the “cycle of bubble and bust” is this: He’s prepared to intervene to make sure that kind of red-hot growth doesn’t occur.
And he’s willing to do it with added government regulation if needed to prevent any one sector of the economy from getting out of balance – the way the dot-com boom did in the 1990s and the real-estate market did earlier this decade.
According to Austan Goolsbee, a key Obama economic adviser, the president plans to focus on stopping bubbles along with preventing busts.
Should we really kill the ups of our economy to get rid of the downs? Do we really want our economy to be like the kiddie ride pictured above? Safe, but with no thrill or chance of solid gains.
Yep, the unregulated Fed is at the bottom of this mess You won’t see it reigned in, thus the actual problem won’t be solved..
Alfred, the reality you appear to be missing was mentioned by Patso…there were no market crashes for 50 years after the Great Depression. The S&L crisis came about after Reagan’s greedy bastards loosened regulations. Then they got loosened some more, leading to the ’87 mini-crash. And they were loosened further still, which allowed the 2001 market to sink so low. More loosening, and we get 2008. External events triggered the crashes, but there were a whole friggen load of external events between ’29 and ’80 and NOT ONE CRASH.
Do you understand why?
SOUNDWASH…excellent post…….the carbon taxes coming are inexplicable during a recession/depression UNLESS the goal is destruction of the US as a superpower…
Adding insult to injury is the science behind global warming is suspect, and probably a fraud.
Olo Baggins of the Bywater…the bottom line is Government caused the collapse…just as it did this last…the solution is not more government.
It is impossible the same people who bring us the US TAX code (which even the Treasury Sec cannot comprehend)
can make the correct business decisions for banks, car manufacturers etc…
If you want proof of incompetance…look no further than the PORKULUS bill congress just enacted…which bankrupts the country, starting in 2010 onward…funding health care mandates ect that has nothing to do with stimulating the economy now….
We need to vote them all out and imprison those who collected money from the people they were supposed to regulate, regardless how the money was laudered…legally or not…
And we need to roll back the stupid carbon/endangered species/waterlands nutzo laws that prevent us from regaing our prosperity.
An excellent example is the oil industry…which is sabotaged by Government regulation, from providing us with cheap American sourced energy…and then Government blames them for any price increases…As Paddo O says, the Fed created the housing bubble the burst, but Barney Frank and Crew enriched themselves watching it happen.
We need STATIUM OF SPECIAL PROSECUTORS to go after every politician who, in the last 30 years, gained financially from those they were supposed to regulate….its time we criminalize their theft and perhaps, in the more severe cases, apply the death penalty..
# 81 Olo Baggins of Bywater said, “Alfred, the reality you appear to be missing was mentioned by Patso…there were no market crashes for 50 years after the Great Depression.”
I guess he wasn’t alive in ’73-’74…
Hurray! The old format is back!…i hope…I did a Google search on old Dvorak posts and then came back here…and the Old format is back!
i hope
The new format sucks $%#@
Market starting another slide in response to O’Mama’s plan to have command economy…
# 87 Paddy-O said, on April 20th, 2009 at 8:00 am
Market starting another slide in response to O’Mama’s plan to have command economy…
It astonishes me anyone could believe the Government competent to run anything…after everyone’s experience with the IRS tax code, DVM, Passport office, etc etc…
Reality is an overwhelming mass of irrefutable evidence Government cannot provide any service to the people, efficiently, competently…
And in spite this every day reality, people suppose Obama and crew can manage our economy…
350 Billion of the TARP passed in 08…is missing, they can’t find it…
350 billion!
And the loons want we give them trillions more to mismanage and steal!
Even if one could point to a Government run entity that isn’t to bad, it DOES NOT FOLLOW this Congress…this President, has a clue…they lost (or stole) 350 BILLION in TARP money.
That loons cannot calculate its cheaper if they buy their own health care…than allow Government supply it…is incredible…a massive irrationality I cannot fathom.
We’re all gonna die.
Paddy…73-74 is disputed as either a crash or bear market. ALL the others happened within days, this one took nearly a year. If it’s not clear, it doesn’t count. My point still stands, and you’re still a troll.
#91 Ah, yes. Ad hominem, the last refuge of the thoroughly owned. LOL
It’ll all come to a head in 2012. If you’ve watched the History channel over the past 5 months you would know this
The DOW continued its dive throughout the day after O’Mama called for gov’t control of the economy.
Visions of Soviet style, 5 year plans sent investors running.
# 94 Paddy-O said, on April 20th, 2009 at 1:16 pm
The DOW continued its dive throughout the day after O’Mama called for gov’t control of the economy.
Visions of Soviet style, 5 year plans sent investors running.
The Wall Street Journal today justified (yet again) its subscription price on page A2, and article by Jon Hilsenrath “For Fed, Big Test Will Be When to Turn Off the Money Pump.” I strongly urge you to check out the entire article, including the one below it where Paul Volcker takes issue with the Fed’s “long term plan for 2% a year inflation.”
Hilsenrath says:
“The focus on inflation isn’t just coming from the Fed. In a report this month, Goldman Sachs economists sought to knock down what they described as as a wave of “inflation hype they had been hearing from clients and bond market traders.”…
combine that with a few paragraphs later:
“If the Fed is too slow to mop up, the economy could theoretically overheat and lead to an inflation comeback. If investors don’t believe the Fed is up to the task, long-term interest rates could rise in advance of such an event, undermining a recovery before it even happens.”
If the Fed ALREADY has to send out spin doctors to calm investors…when the prevailing fear is deflation…what will in in 2011 when inflation is the consensus.
lastly, lets not also forgot the next (global scale)
bubble Mr Anti-bubble is in the process of helping to create will be the Carbon (derivative?)Bubble.
only thing that can possibly stop this madness is if the true science that is effecting the solar system wide “climate change” and how the electromagnetic and gravimetric fields of where we are currently in the galaxy (plus it’s relevant cycles) are effecting (and heating up) the planets in our solar system is allowed to see the light of (public) day.
simplistically put, one might refer to it as a “magnetic/gravitic squeeze play”
(if there are alien entities observing our politics,
they must be both sad and laughing their asses off over the CO2 scam our governments are trying to sell to our collective peoples as to the “why” behind the current atmospheric changes)
the carbon tax-squeeze scam is already unraveling in
Europe. -lets hope it hits here before the summer of hell is upon us..
-s
-anyone who trusts today’s politicians to act in the best interests of the people for whom they represent needs their heads checked.
TURN OFF YOUR TV, STOP SLEEP WALKING and WAKE UP.
#6, speaking of scams and scammers.
http://foxnews.com/politics/2009/04/20/key-obama-climate-change-exchange-swayed-officials/
Too funny. Obama has a penchant for working with criminals…
I meant #96 above.